Xu Shihong: Taiwan LED to adjust business strategy to deal with

China's LED market demand huge business opportunities. A new century Taiwan area general manager Xu Shihong said, in recent years in China, the rapid development of LED industry, is the main reason for many Taiwan area talent and resources technology continues to enter the mainland, plus the LED entry threshold is not high, mainland China also put LED as a key industry, from upstream to downstream of the patent technology of materials and products their production plan, menacing. At present, the main advantage of practitioners in Taiwan area is the integrity of the industrial chain and process technology, it is necessary to adjust the business mentality and strategic model, more able to cope with the recent changes in the mainland market in China LED.

Taiwan listed LED chip factory in the new century optoelectronics, the main products for the blue and green LED, recently in China, the outdoor advertising market was good, and become the main supplier of China Hangzhou Silan, to the end of the third quarter of this year, the average gross margin remained above 40%. At present, for the fourth quarter of October is also good, because revenue is still high, so that although 11-12 monthly revenue will decline, but the overall expected fourth quarter revenues decline or will be less than the same industry, is expected to decrease within 10%.

For China's LED market, Xu Shihong said that there are a few unique phenomenon, first, as long as there is a market light, such as the regular square, large pictures, beads, etc.. Second, the market needs of a hundred schools of thought contend, third, the price of floating on the 1st day of the three cities. The application of high order SideView in China is still relatively small, but the outdoor billboards, lighting and other applications are now relatively rapid growth in demand in China's mainland, and the number of demand is relatively large scale projects. The demand for LED in this area is not so high in brightness requirements, and the relative stability and reliability requirements are higher.

Xu Shihong said that the recent development of China's LED industry is now very fast, because these years there are a lot of Taiwan region of the manufacturers and technical resources to enter the Chinese mainland market. With the LED industry technical threshold is not high, the central government of China, and local government subsidies, by importing the LED industry to build high-tech industrial park, which now LED from upstream to downstream extension of packaging industry in China blossom everywhere scene.

For example, at present, China's mainland LED chip industry distribution, concentrated in the Bohai region, the Yangtze River Delta, the Pearl River Delta, Xiamen, Nanchang, Wuhan and other areas. The Gulf of Bohai to Dalian Road, Beijing, Beijing Zhiyuan Changdian beauty, Shandong Huaguang, Hebei Ruiyuan department, Liuzhou Qingdao, Beijing, Hebei, Hebei Sheng Ke Jia Qing Rui, Jining Lide blue. The Pearl River Delta region of Shenzhen, Hongkong, Guangzhou Fangda Puguang Dongguan gaohui, Shenzhen ceramics, Orient, Shenzhen century Jingyuan, Hongkong zhenminglee. The Yangtze River Delta region of Shanghai, Shanghai Blaupunkt, Hangzhou blue Silan, Shanghai Yu Yangzhou, Zhenjiang Huaxia, Aurelio, Hangzhou sea whale. The others are Jiangxi, Jiangxi, Jiangxi LIAN Foucault, Xiamen, Xiamen three crystal can do sign, Wuhan Di source, Wu Hanhua Chan, Xi'an, Quanzhou, Hunan micro crystal blue zengxing coke etc..

Xu Shihong believes that the current LED industry in Taiwan advantage lies in the integrity of the industry, including the supply chain, technology, yield integrity and so on, but this part of the mainland LED practitioners do not have the opportunity to catch up. The main reason is that China's LED industry in the national basic research and development program, from the MOCVD machine, HVPE equipment, process equipment, single crystal materials and even fluorescent powder, etc., China is going to do their own. Compared to the Taiwan region has always been to allow practitioners to go alone, pockets of deep manufacturers have more money to do more research and development resources, pockets of shallow manufacturers are often unable to support the downturn. In the face of China's mainland LED industry systematic offensive, has formed a crisis in the region of LED practitioners in Taiwan. When will the new century in 2003 to mainland China market, the main reason is that the new century product line in the Taiwan area the second large packaging factory business setback, in order to allow the company to operate smoothly, decided to go forward in the mainland of china. At present, the management mode of the new century in the mainland of China is mainly through the sale of more reliable agents.

However, although the size of the market in mainland China to attract people, but Xu Shihong stressed that China's mainland market is everywhere LED practitioners to signs of danger appearing everywhere in China, you should be very cautious position. Analysis of the major risks that have occurred in recent years, however, is nothing more than the problem of accounts, as well as the understanding of local and local cognitive gaps. For example, the local hear often is not a big problem, according to the experience in the days after often lead to big problems and so on.

On the other hand, there are also the mainland LED market in China on the issue of downstream technology cognitive differences, the industry level uneven, including extension yield identification, control, process control and environmental conditions of packaging technology and so on, resulting in LED products not only from the wavelength, brightness and other optical properties of specifications and testing standards of a wide variety, quality of the product itself there is a big gap between the. Coupled with China's mainland market, there is often improper manipulation of human beings, making the foundation of the local market trading mutual trust is weak, while the mainland manufacturers of the normal inventory movements, but also the mainland market is the biggest variable.

Overall, Xu Shihong believes that China currently has the LED industry as a key development of the industry, whether it is capital, technology and management skills, all is up LED practitioners in Taiwan area. China is no longer a secondary or clear stock market. Taiwan manufacturers in accordance with the company's own product characteristics, cut into the market, and in the business model to take